Income tax rates
| 2009/10 | 2009/10 | 2008/09 | 2008/09 |
| Band | Rate | Band | Rate |
| £ | % | £ | % |
| 0 - 2,440 | 10% on dividends and savings | 0 - 2,320 | 10% on dividends and savings |
| 2,441 - 37,400 | 20% except dividends (10%) | 2,321 - 34,800 | 20% except dividends (10%) |
| over 37,400 | 40% except dividends (32.5%) | over 34,800 | 40% except dividends (32.5%) |
| Allowance | Age | 2009/10 | 2008/09 |
| £ | £ | ||
| Personal allowance | under 65 | 6,475 | 6,035 |
| 65 - 74 | 9,490 | 9,030 | |
| 75 and over | 9,640 | 9,180 | |
| Married couple's allowance | less than 75 and born before 6.4.35 | n/a | 6,535 |
| 75 and over | 6,965 | 6,625 | |
| min. amount | 267 | 2,540 | |
| Age allowance income limit | reduce by £1 for every £2 over limit | 22,900 | 21,800 |
| Blind person's | 1,890 | 1,800 |
Corporation tax rates
| Company rate | Year to | 31.3.10 | Year to | 31.3.09 |
| Profits band | Rate | Profits band | Rate | |
| £ | % | £ | % | |
| Small companies rate | 0 - 300,000 | 21 | 0 - 300,000 | 21 |
| Marginal (small companies) rate | 300,001 - 1,500,000 | 29.75 | 300,001 - 1,500,000 | 29.75 |
| Full rate | over 1,500,000 | 28 | over 1,500,000 | 28 |
| Small companies fraction | 7/400 | 7/400 |
Businesses are unhappy that at midnight on 31st December 2009 VAT will revert from it's current rate of 15% back to its old rate of 17.5%. It is the timing that seems to trouble most businesses in that it is a time consuming excercise at a traditionally busy time of the year and there is always the possibility that the increase may adversely affect the post Christmas sales period.
Many firms are still experiencing the effects of the credit crunch with the biggest drop in lending for 9 years. According to the Bank of England report, lending to businesses slumped to £7.9 billion in May as compared to £12.6 billion in March. The concern is that the lack in working capital may lead to yet more firms laying off workers or going out of business altogether.
People who save for their pensions through company schemes could be missing out on millions of pounds of tax relief by failing to take advantage of making additional voluntary contributions. The impact of the credit crunch has had an effect on the value of peoples pension funds as well as also finding that their money doesn't go as far as it used to. Failing to save for retirement has become an increasing problem in the U.K. and it is estimated that in total up to £720 million of tax relief is not being taken advantage of. As from 6 April 2010 the minimum age at which people can draw their private pensions will rise from 50 to 55.
The recent decision by MP's to reject amendments to the Business Rates Supplements Bill could harm regional economies according to the CBI. Under the current wording the bill allows for a 2p supplement to be levied on business ratepayers, the equivalent of a 4% rise in rates bills.